The Moldovans reduced consumption and economized as they had a gloomier perception of their earnings. In 2023, this perception will change. The people will become more optimistic and consumption is expected to increase, expert of the Institute for Development and Social Initiatives “Viitorul” Veaceslav Ioniță stated in an economic analysis, being quoted by IPN.
“Inflation will decline. The prices of energy resources will go down. The other prices will rise modestly. As inflation will be low, the population’s incomes will grow. Now that the danger of inflation passed, the NBM should relax its monetary policy, while the banks should become more active so as to this way set off the economy’s engines, including by fueling the population’s consumption,” stated Veaceslav Ioniță.
The expert noted that the central bank’s measures that led to the toughening up of lending conditions made the Moldovans give up borrowing and the volume of consumer loans decreased as a result.
Veaceslav Ioniță said that after three years of crises that led to a decline in the population’s consumption, the situation will normalize in 2023.
“The interest rate on consumer loans decreased from 37% in 2000 to 20% in 2007. The interest in 2021 was the lowest in the country’s history, of 4.6%. This led to an explosion in consumer loans. Later, the interest rate rose significantly, reaching about 16% in the third quarter of 2022, now interest declined slightly and is expected to go under 10% in the first half of this year,” stated the economist.
According to him, the danger of inflation passed and the rate of inflation follows downward trends. The National Bank of Moldova will start to relax the monetary policy. After the crisis year 2022, consumption should be encouraged so that the people return to their normal behavior and lifestyle. The population’s incomes in 2023 are expected to grow considerably.
